Source: HEI Facts analysis of 2025 HMDA data from the FFIEC and CFPB. Second-lien HELOCs from lenders that report under HMDA.
Does an HEI get around your denial reason?
Your denial letter lists the reasons your lender turned you down. Find yours below.
| HELOC denial reason | Share of denials | Can an HEI help? |
|---|---|---|
| Debt-to-income ratio | 44% | Often. An HEI has no monthly payment to qualify for, though providers still review your finances. |
| Credit history | 25% | Sometimes. Point, Unlock, and Splitero publish a 500 minimum credit score; Hometap publishes 585. |
| Collateral | 12% | Usually not. HEIs limit total borrowing against your home too: 70% to 75% of its value for the providers that publish a limit. |
| Incomplete application | 9% | Fix it first. A completed HELOC application usually costs less than an HEI. |
| Other | 7% | It depends. Your denial letter lists the specific reasons. |
| Unverifiable information | 2% | Maybe. Ask each provider what it verifies before you apply. |
Share of denials: how often each reason was listed first, among 2025 HELOC denials with a reason reported.
Should you reapply for a HELOC instead?
If the fix is simple, like a missing document or a paid-down credit card, usually yes: a HELOC tends to cost less than an HEI. See how they compare in HEI vs HELOC, and see every other option in HELOC alternatives on HEI Compare.
Check your fit
Choose why you were denied. We'll check each provider's published limits against your home, state, and credit.
Estimates use each provider's published terms (verified September 23, 2026) and $1,500 of third-party closing costs. Availability comes from each provider's own list as of September 23, 2026, and can vary by county. Credit minimums and limits are the published ones; a provider can still decline or change terms after reviewing your home. Not an offer or a guarantee.
Questions
Can I get a home equity investment if I was denied a HELOC?
Often, depending on why you were denied. An HEI has no monthly payment, so a denial for debt-to-income is less likely to stop an HEI. A denial for too little equity usually will, because HEI providers limit total borrowing against your home too.
What credit score do HEI providers require?
Published minimums: Point, Unlock, and Splitero list 500, and Hometap lists 585. Unison and CHEIFS don't publish one. Each provider still reviews your full application.
Is an HEI more expensive than a HELOC?
Usually, when you can get the HELOC. An HEI's cost depends on how much your home appreciates, and in typical scenarios it is higher than a HELOC's interest. The HEI Calculator shows each provider's effective annual cost on your numbers, which you can compare with a HELOC rate you're quoted.
Why was my HELOC denied?
Your lender must tell you, usually in an adverse action letter. Across all HELOC denials reported under federal HMDA rules for 2025, the most common first reason was debt-to-income ratio (44% of denials with a reason reported).
Want someone on your side?
Tell us where you are. Kevin, Jason, or Mike will look it over and reply by email.
